Incorporated in 2018, eské deals in luxury handbags, laptop bags, accessories, luggage and travel items for men and women
In FY23, the startup's total revenue, including sales of both manufactured and traded goods, amounted to INR 8.5 Cr
In the $3.7 Bn handbag market, where the online handbag market alone is currently worth $500 Mn and projected to reach $800 Mn by 2028, the startup’s competitive advantage is its in-house manufacturing
In India’s rapidly evolving $63 Mn fashion and lifestyle market, several young D2C brands have cropped up in the past few years to cater to the swiftly changing demands of a new-age consumer. Flush with investor capital, these brands are also locking horns with legacy players (both local and global) to serve the country’s 190 Mn+ digital shoppers.
However, there is a glaring mismatch between costs and the quality of products being offered to end users. For context, a more durable designer product may force new-age shoppers to cough up a fortune or drop products from their shopping carts, owing to their sky-high prices.
Peeved by the gap in the Indian fashion and lifestyle space, Shivam Khanna founded the D2C lifestyle brand eské in 2018. Today, the fashion and accessories brand deals in luxury handbags, laptop bags, accessories, luggage and travel items for men and women.
The brand gives tough competition to the likes of Aldo, Tommy Hilfiger, Da Milano Leathers, Hidesign and other luxury brands by providing high-quality lifestyle products at affordable rates. In addition, it is trying to challenge the dominance of giants like American Tourister, Accessorize, Aristocrat, and VIP Industries in the travel segment.
Since its inception, eské has raised $1.5 Mn from Mistry Ventures and Fluid Ventures. In the domestic fashion, lifestyle and accessories segment, the startup directly locks horns with Zouk, Scarters, Mokobara, and Chumbak.
In the $3.7 Bn handbag market, where the online handbag market alone is currently worth $500 Mn and projected to reach $800 Mn by 2028, the D2C brand’s competitive advantage is its in-house manufacturing.
The D2C brand, which primarily operates online, sells its products through its website and ecommerce platforms such as Amazon and Myntra. Nearly 80% of its revenue comes from online channels, with about 70% of the online sales originating from its website, and Myntra being the second most important platform.
In the Fiscal Year 2023, the startup’s total revenue, including sales of both manufactured and traded goods, amounted to INR 8.5 Cr.
The Genesis Of eské
The genesis of eské lies in Khanna’s 30 years of manufacturing experience while running SK Exports, the parent company of eské. Speaking with Inc42, the CEO and founder said that he identified an opportunity to cause disruption while making products for global brands like Tommy Hilfiger, Calvin Klein, Kenneth Cole, and Aldo.
He highlighted that several of these lavishly priced luxury brand products are manufactured at a fraction of their retail costs. For instance, Khanna observed, a product originally priced at $40 to $50 is retailed globally at $400 to $500. These products then reach India after six to eight months at a much higher price.
The CEO said that with the brand, eské, he aimed to capitalise on India’s manufacturing capabilities to make available a range of luxury products to users at affordable prices.
Notably, with three decades of manufacturing experience, Khanna is well-versed in crafting high-quality leather handbags, footwear, wallets, and accessories. In addition, having an in-house manufacturing unit gives the brand a competitive advantage over its more flamboyant peers who depend on players like SK Exports for manufacturing.
“This sets us apart from competitors who rely on imports from China, exposing them to geopolitical risks. By producing in India, we maintain quality standards and eliminate concerns like import duties and currency fluctuations. Owning our supply chain allows us to swiftly respond to customer feedback, make improvements and launch new products rapidly,” the founder said.
eské’s Less Is More Playbook
Khanna said that eské’s strategy sharply contrasts with other brands that adopt a seasonal approach, offering summer, fall, winter, or holiday collections. eské rather follows a ‘less is more’ philosophy and prioritises continual improvement and minimalistic design. The brand accomplishes this by offering a lifetime guarantee on its products (generally four years). During this time, the company addresses any manufacturing issues.
In addition, the startup also provides sustainable vegan leather product options. For its vegan collection, the D2C brand uses a material called Mirum, which is a plant-based leather. Mirum serves as a plastic-free leather equivalent, offering the same look and feel as traditional leather.
“Instead of offering fast fashion items that get replaced every season, we provide durable, sustainable, and luxurious products designed for long-term use,” the founder said.
Khanna told Inc42 that he is focussed on building a sustainable brand for the long term and not acquiring customers overnight at exorbitant prices.
“Moving forward, we aim to make sustainability a core aspect of our brand, along with functionality, quality, and durability, forming the four pillars of our ethos,” the founder said.
Besides selling eco-friendly bags, the D2C brand also offers men’s handbags, laptop bags, backpacks, and briefcases.
“Approximately 45% of our revenue comes from the men’s category. This category has contributed significantly to our market leadership and continued growth,” Khanna said.
Road Ahead For eské?
As of now, the D2C brand has set its sights on opening physical stores to boost brand visibility, engagement, and speed up the company’s growth. It presently has three offline stores in Delhi, Noida and Mumbai, and plans to expand to 20-25 stores in the short term. Its long-term plan is to expand to 150-500 stores in the next six years, with a keen focus on Tier 2 and Tier 3 cities.
According to Khanna, these 400-600 square feet stores are expected to generate 15-20% store-level EBITDA in the first year itself.
“While online offers convenience, we recognise the importance of offline presence in our strategy. Therefore, we are strategically expanding offline, targeting specific metros and Tier 2 cities where significant buying trends are observed. Moving forward, we plan to aggressively scale our offline presence with standalone stores in malls,” the CEO and founder said.
The brand’s expansion strategy is centred around building credibility and desirability while leveraging its strong customer base, which eské has grown from a mere 1,000 customers to more than 1 Lakh users today.
“While our presence in India is currently lower compared to other brands, customers who have experienced eské products have shown strong brand loyalty.”
Currently valued at $6 Mn, the startup aims to achieve INR 100 Cr in revenue within the next 2 years, primarily through offline channels.
Khanna believes the D2C brand’s competitive advantage comes from vertical integration, which helps optimise working capital.
Presently, the Indian Handbags ecommerce market is predicted to reach $512.7 Mn by the end of 2024 and grow at a CAGR of 11.1% to become a $779.7 Mn opportunity by 2028.
Amid this, it would be interesting to observe how eské stands tall against the likes of global giants like Burberry, Chanel, Gucci, and LVMH with its affordable luxury playbook.
[Edited by Shishir Parasher]
